FINAL EXAM

$\backslash$table$[[\backslash$table$[[$Student Name$-$Surname:$],[$Student Identity Number:$]],$Date: $31/05/2024]]$

The Income Statement and Balance Sheets of Royal Corporation, a merchandising company, are presented below.

Required: Prepare the Statements of Cash Flows using the indirect method.

$\backslash$table$[[\backslash$table$[[$Royal Corporation $-$ Balance Sheets$],[($dollars in thousands$)]],2023,2022],[$Current Assets,$1,314,000,1,220,000],[$Cash and cash equivalents,$$91,000,$$$29,000],[$Accounts Receivable,$637,000,654,000],[$Inventories$,586,000,537,000],[$Fixed Assets,$863,000,833,000],[$Property$,$ plant and equipment,$1,517,000,1,394,000],[(-)$ Accumulated Depreciation,$654,000,561,000],[$Property$,$ plant and equipment,$863,000\_,833,000],[$ASSETS$,2,177,000,2,053,000],[$TOTAL LIABILITIES & OWNER'S EQUITY$],[$Accounts Payable,$264,000,220,000],[$Accrued Expenses,$193,000,190,000],[$Income taxes payable,$75,000,71,000],[$Short Term Liabilities,$532,000,481,000],[$Long Term Liabilities,$479,000,520,000],[$Bonds Payable,$479,000,520,000],[$TOTAL LIABILITIES,$1,011,000,1,001,000],[$Owner$\text{'}$s Equity,$1,166,000,1,052,000],[$Coomon Stock,$157,000,155,000],[$Retained Earnings,$1,009,000,897,000],[$Total Liabilities & Owner's Equity,$2,177,000,2,053,000]]$

Royal Corporation $-$ Income Statement $-2023($dollars in thousands$)$

$\backslash$table$[[$Sales$,,$$$3,638,000],[(-)$ Cost of Goods Sold,,$-2,469,000],[$Gross Profit,,$1,169,000],[(-)$ Operating Expenses,,$-941,000],[$Marketing & Sales Expenses,$557,370,],[$Administrative Expenses,$383,630,],[$EBIT$,,228,000],[$Non$-$operating items,,$],[$Gain on sale of store,,$3000],[$Earnings Before Tax,,$231,000],[(-)$ Taxes,,$-91,000],[$Net Profit After Tax,,$140,000]]$

Assume the following facts with respect to Royal, Co$.$:

The company sold a store that had an original cost of $$15$ million and accumulated depreciation of $$10$ million. The cash proceeds from the sale were $$8$ million. The gain on the sale was $$3$ million.

The company did not issue any new bonds during the year.

The company did not repurchase any of its own common stock during the year.

The company paid a cash dividend during the year.